Daily stock market review and outlook

Better than expected January inflation data, which eased to a 3-year low of 6.62 % and positive trends in Asian markets were not enough to enthuse Indian stock market. A slew of weak third quarter earnings from companies like, GVK Power, Tata Steel and disappointing IIP numbers dampened hopes of a rate cut by RBI in near short term thus dragged the markets down. After opening marginally higher above yesterday’s close, markets immediately went below the dotted line. However, it did tried to recover during the pre-noon session, but the recovery was short lived and the indices nosedived into negative zone again.

The 30-share BSE Sensex lost 111.90 points to close at 19497.18. The Sensex surged to a day's high of 19639 and a fell to a day's low of 19444. It opened at 19626. The 50-share NSE Nifty lost 36.00 points, to end at 5896.95. Nifty touched a day's high of 5940 and a day's low of 5884. It opened at 5933.

Of the 50-share Nifty pack 20 stocks ended with gains while the rest 30 stocks closed with loses. The top 5 gainers among NSE stocks were: GAIL surging by 2.01 %, followed by HUL (1.93 %), HDFC Bank (1.60 %), Tata Steel (1.30 %) and Asian Paints (1.23 %). The top 5 losers among NSE socks are: Siemens (4.70 %), Bharti Airtel (4.37 %), Power Grid (3.82 %), BPCL (3.51 %) and Wipro (3.33 %).

Of the 30 shares of BSE index components, 14 stocks ended in positive terrain while the rest 16 stocks closed in negative zone. Top 5 gainers in BSE Sensex stocks were: HUL surging by 2.24 %, followed by GAIL (1.97 %), HDFC Bank (1.65 %), Tata Steel (1.17 %) and TCS (1.15 %). The top 5 losers of the Sensex pack were: Bharti Airtel (4.02 %), Wipro (3.33 %), Maruti (3.30 %), L&T (2.72 %) and Reliance (2.63 %).

Both BSE Mid Cap and Small Cap Index declined. BSE Mid Cap index closed lower by 1. 1.4%, while BSE Small Cap index ended lower by 1.9% Among the 13 sectoral indices in BSE, only 3 sectors closed with gains, while 10 sectors closed with loses. The three gaining sectors were: BSE FMCG up by 0.44%, BSE IT up by 0.27% and BSE Metal gaining by 0.04%. Top three sectoral losers were: BSE CG down by 2.27%, BSE Oil&Gas down by 1.59% and BSE Auto down by 1.49%.

The market breadth stood negative. Of the 2961 stocks traded on the BSE, 656 (22.15 %) rose, 1501 (50.69 %) fell and 804 (27.15 %) stocks remained unchanged.

Market outlook for tomorrow

Almost all the Asian markets ended the day’s trading with smart gains. Japan’s Nikkei gained 0.50 %, Hang Seng index in Hong Kong moved up by 0.85 %, Jakarta Composite was up by 0.37 %, and KOSPI Index gained 0.18 %. Straits Times however lost 0.32 %. Markets in Taiwan and China were closed today.

Most European markets ended lower today. FTSE index in UK is down by 0.50 %, the CAC index in France is down by 0.78 % while DAX index in Germany is down by 1.05 %. However, only AEX Amsterdam Index is marginally up by 0.03 %. Markets in the U.S are trading lower. Dow Jones Industrial Average is trading down by 0.09 %, while the Nasdaq Composite Index is down by 0.02 %.

Meanwhile, foreign institutional investors (FIIs) continued to remain bullish on India. They bought shares worth net Rs 800.31 crore yesterday as per provisional data from the stock exchanges.

Thus market sentiment for tomorrow will most likely be negative. Selling pressure will continue. However, Minister of State for Petroleum and Natural Gas clearly indicating that oil price hike issue will be taken by oil companies and not by the ministry will definitely help the market sentiment of oil companies. Analysts opined that the market will continue its lackluster run till union budget is announced.